| Schedule of Composition of Investment Portfolio |
The following table shows the composition of our investments as of June 30, 2026 with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hierarchy |
|
|
Cost |
|
Fair Value |
|
Level 1 |
|
Level 2 |
|
Level 3 |
First Lien Secured Debt |
|
$ |
25,528,593 |
|
$ |
25,259,847 |
|
$ |
— |
|
$ |
5,170,893 |
|
$ |
20,088,954 |
Second Lien Secured Debt |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Unsecured Debt |
|
|
29,762 |
|
|
29,250 |
|
|
— |
|
|
14,310 |
|
|
14,940 |
Common Equity/Interests |
|
|
75,244 |
|
|
69,156 |
|
|
— |
|
|
202 |
|
|
68,954 |
Preferred Equity |
|
|
9,344 |
|
|
8,982 |
|
|
— |
|
|
— |
|
|
8,982 |
Total Investments before Cash Equivalents |
|
$ |
25,642,943 |
|
$ |
25,367,235 |
|
$ |
— |
|
$ |
5,185,405 |
|
$ |
20,181,830 |
Money Market Fund |
|
$ |
407,895 |
|
$ |
407,895 |
|
$ |
407,895 |
|
$ |
— |
|
$ |
— |
Total Cash Equivalents |
|
$ |
407,895 |
|
$ |
407,895 |
|
$ |
407,895 |
|
$ |
— |
|
$ |
— |
Total Investments after Cash Equivalents |
|
$ |
26,050,838 |
|
$ |
25,775,130 |
|
$ |
407,895 |
|
$ |
5,185,405 |
|
$ |
20,181,830 |
Interest rate swaps |
|
$ |
— |
|
$ |
(31,364) |
|
$ |
— |
|
$ |
(31,364) |
|
|
— |
Options (Swaptions and Binary Options) |
|
|
— |
|
|
2,207 |
|
|
— |
|
|
2,207 |
|
|
— |
Foreign currency forward transactions |
|
|
— |
|
|
88,591 |
|
|
— |
|
|
88,591 |
|
|
— |
Total Assets and Liabilities at Fair Value |
|
$ |
26,050,838 |
|
$ |
25,834,564 |
|
$ |
407,895 |
|
$ |
5,244,839 |
|
$ |
20,181,830 |
The following table shows the composition of our investments as of December 31, 2025, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hierarchy |
|
|
Cost |
|
Fair Value |
|
Level 1 |
|
Level 2 |
|
Level 3 |
First Lien Secured Debt |
|
$ |
24,310,842 |
|
$ |
24,441,482 |
|
$ |
— |
|
$ |
5,843,088 |
|
$ |
18,598,394 |
Second Lien Secured Debt |
|
|
33,700 |
|
|
5,235 |
|
|
— |
|
|
5,235 |
|
|
— |
Unsecured Debt |
|
|
45,544 |
|
|
45,525 |
|
|
— |
|
|
10,448 |
|
|
35,077 |
Common Equity/Interests |
|
|
18,084 |
|
|
15,993 |
|
|
— |
|
|
— |
|
|
15,993 |
Preferred Equity |
|
|
6,255 |
|
|
7,393 |
|
|
— |
|
|
— |
|
|
7,393 |
Total Investments before Cash Equivalents |
|
$ |
24,414,425 |
|
$ |
24,515,628 |
|
$ |
— |
|
$ |
5,858,771 |
|
$ |
18,656,857 |
Money Market Fund |
|
$ |
227,502 |
|
$ |
227,502 |
|
$ |
227,502 |
|
$ |
— |
|
$ |
— |
Total Cash Equivalents |
|
$ |
227,502 |
|
$ |
227,502 |
|
$ |
227,502 |
|
$ |
— |
|
$ |
— |
Total Investments after Cash Equivalents |
|
$ |
24,641,927 |
|
$ |
24,743,130 |
|
$ |
227,502 |
|
$ |
5,858,771 |
|
$ |
18,656,857 |
Currency Swaps |
|
$ |
— |
|
$ |
7,947 |
|
$ |
— |
|
$ |
7,947 |
|
$ |
— |
Interest rate swaps |
|
|
— |
|
|
56,888 |
|
|
— |
|
|
56,888 |
|
|
— |
Foreign currency forward transactions |
|
|
— |
|
|
(27,819) |
|
|
— |
|
|
(27,819) |
|
|
— |
Total Assets and Liabilities at Fair Value |
|
$ |
24,641,927 |
|
$ |
24,780,146 |
|
$ |
227,502 |
|
$ |
5,895,787 |
|
$ |
18,656,857 |
|
| Schedule of Changes in Fair Value of Investments |
The following table shows changes in the fair value of our Level 3 investments during the three months ended June 30, 2026:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
|
First Lien Secured Debt (2) |
|
Second Lien Secured Debt (2) |
|
Unsecured Debt |
|
Common Equity/Interests |
|
Preferred Equity |
|
Total |
Fair value as of March 31, 2026 |
|
$ |
20,119,100 |
|
$ |
— |
|
$ |
49,435 |
|
$ |
60,946 |
|
$ |
10,976 |
|
$ |
20,240,457 |
Net realized gains (losses) |
|
|
(14,708) |
|
|
— |
|
|
— |
|
|
— |
|
|
46 |
|
|
(14,662) |
Net change in unrealized gains (losses) |
|
|
(32,594) |
|
|
— |
|
|
232 |
|
|
(3,656) |
|
|
(146) |
|
|
(36,164) |
Net amortization on investments |
|
|
11,752 |
|
|
— |
|
|
16 |
|
|
— |
|
|
— |
|
|
11,768 |
Purchases, including capitalized PIK (3) |
|
|
1,760,126 |
|
|
— |
|
|
457 |
|
|
11,664 |
|
|
400 |
|
|
1,772,647 |
Sales (3) |
|
|
(1,189,514) |
|
|
— |
|
|
(35,200) |
|
|
— |
|
|
(2,294) |
|
|
(1,227,008) |
Transfers out of Level 3 (1) |
|
|
(565,208) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(565,208) |
Transfers into Level 3 (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Fair value as of June 30, 2026 |
|
$ |
20,088,954 |
|
$ |
— |
|
$ |
14,940 |
|
$ |
68,954 |
|
$ |
8,982 |
|
$ |
20,181,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2026 |
|
$ |
(31,994) |
|
$ |
— |
|
$ |
242 |
|
$ |
(3,655) |
|
$ |
(147) |
|
$ |
(35,554) |
(1)Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown. (2)Includes unfunded commitments measured at fair value of $(59,120). (3)Includes reorganizations and restructuring of investments. The following table shows changes in the fair value of our Level 3 investments during the six months ended June 30, 2026:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
|
First Lien Secured Debt (2) |
|
Second Lien Secured Debt (2) |
|
Unsecured Debt |
|
Common Equity/Interests |
|
Preferred Equity |
|
Total |
Fair value as of December 31, 2025 |
|
$ |
18,598,394 |
|
$ |
— |
|
$ |
35,077 |
|
$ |
15,993 |
|
$ |
7,393 |
|
$ |
18,656,857 |
Net realized gains (losses) |
|
|
(16,797) |
|
|
— |
|
|
— |
|
|
— |
|
|
46 |
|
|
(16,751) |
Net change in unrealized gains (losses) |
|
|
(334,666) |
|
|
— |
|
|
128 |
|
|
(3,006) |
|
|
(1,502) |
|
|
(339,046) |
Net amortization on investments |
|
|
22,836 |
|
|
— |
|
|
94 |
|
|
— |
|
|
— |
|
|
22,930 |
Purchases, including capitalized PIK (3) |
|
|
3,667,796 |
|
|
— |
|
|
14,841 |
|
|
57,160 |
|
|
5,339 |
|
|
3,745,136 |
Sales (3) |
|
|
(1,601,638) |
|
|
— |
|
|
(35,200) |
|
|
— |
|
|
(2,294) |
|
|
(1,639,132) |
Transfers out of Level 3 (1) |
|
|
(246,971) |
|
|
— |
|
|
— |
|
|
(1,193) |
|
|
— |
|
|
(248,164) |
Transfers into Level 3 (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Fair value as of June 30, 2026 |
|
$ |
20,088,954 |
|
$ |
— |
|
$ |
14,940 |
|
$ |
68,954 |
|
$ |
8,982 |
|
$ |
20,181,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2026 |
|
$ |
(334,732) |
|
$ |
— |
|
$ |
89 |
|
$ |
(3,006) |
|
$ |
(1,502) |
|
$ |
(339,151) |
(1)Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown. (2)Includes unfunded commitments measured at fair value of $(59,120). (3)Includes reorganizations and restructuring of investments. The following table shows changes in the fair value of our Level 3 investments during the three months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
|
First Lien Secured Debt (2) |
|
Second Lien Secured Debt (2) |
|
Unsecured Debt |
|
Common Equity/Interests |
|
Preferred Equity |
|
Total |
Fair value as of March 31, 2025 |
|
$ |
12,774,315 |
|
$ |
3,462 |
|
$ |
— |
|
$ |
966 |
|
$ |
6,483 |
|
$ |
12,785,226 |
Net realized gains (losses) |
|
|
14,149 |
|
|
(34,504) |
|
|
— |
|
|
— |
|
|
— |
|
|
(20,355) |
Net change in unrealized gains (losses) |
|
|
179,632 |
|
|
36,691 |
|
|
— |
|
|
2,427 |
|
|
451 |
|
|
219,202 |
Net amortization on investments |
|
|
7,386 |
|
|
29 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,415 |
Purchases, including capitalized PIK (3) |
|
|
3,185,808 |
|
|
— |
|
|
— |
|
|
3,406 |
|
|
9 |
|
|
3,189,223 |
Sales (3) |
|
|
(1,626,623) |
|
|
(5,679) |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,632,302) |
Transfers out of Level 3 (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Transfers into Level 3 (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Fair value as of June 30, 2025 |
|
$ |
14,534,667 |
|
$ |
— |
|
$ |
— |
|
$ |
6,799 |
|
$ |
6,944 |
|
$ |
14,548,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2025 |
|
$ |
181,862 |
|
$ |
— |
|
$ |
— |
|
$ |
2,427 |
|
$ |
450 |
|
$ |
184,739 |
(1)Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown. (2)Includes unfunded commitments measured at fair value of $(46,746). (3)Includes reorganizations and restructuring of investments. The following table shows changes in the fair value of our Level 3 investments during the six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
|
First Lien Secured Debt (2) |
|
Second Lien Secured Debt (2) |
|
Unsecured Debt |
|
Common Equity/Interests |
|
Preferred Equity |
|
Total |
Fair value as of December 31, 2024 |
|
$ |
11,191,530 |
|
$ |
5,723 |
|
$ |
— |
|
$ |
833 |
|
$ |
6,428 |
|
$ |
11,204,514 |
Net realized gains (losses) |
|
|
18,834 |
|
|
(33,842) |
|
|
— |
|
|
— |
|
|
— |
|
|
(15,008) |
Net change in unrealized gains (losses) |
|
|
244,376 |
|
|
31,087 |
|
|
— |
|
|
2,421 |
|
|
445 |
|
|
278,329 |
Net amortization on investments |
|
|
14,482 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
14,482 |
Purchases, including capitalized PIK (3) |
|
|
5,845,752 |
|
|
— |
|
|
— |
|
|
3,545 |
|
|
71 |
|
|
5,849,368 |
Sales (3) |
|
|
(2,314,861) |
|
|
(2,968) |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,317,829) |
Transfers out of Level 3 (1) |
|
|
(465,446) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(465,446) |
Transfers into Level 3 (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Fair value as of June 30, 2025 |
|
$ |
14,534,667 |
|
$ |
— |
|
$ |
— |
|
$ |
6,799 |
|
$ |
6,944 |
|
$ |
14,548,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized gains (losses) on Level 3 investments still held as of June 30, 2025 |
|
$ |
226,302 |
|
$ |
— |
|
$ |
— |
|
$ |
2,422 |
|
$ |
444 |
|
$ |
229,168 |
(1)Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown. (2)Includes unfunded commitments measured at fair value of $(46,746). (3)Includes reorganizations and restructuring of investments.
|
| Summary of Unobservable Inputs Used in Fair Value Measurements of Level 3 Investments |
The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of June 30, 2026 and December 31, 2025. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below table is not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values. The unobservable inputs used in the fair value measurement of our Level 3 investments as of June 30, 2026 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements |
Asset Category |
|
Fair Value |
|
Valuation Techniques/Methodologies |
Unobservable Input |
Range |
Weighted Average (1) |
First Lien Secured Debt |
$ |
18,965,417 |
|
Discounted Cash Flow |
Discount Rate |
2.6% |
- |
58.0% |
9.8% |
|
|
891,210 |
|
Transactional Value |
Cost |
N/A |
|
N/A |
N/A |
|
|
232,327 |
|
Asset Recoverability |
Recoverability % |
0.0% |
- |
100.0% |
51.6% |
Unsecured Debt |
|
14,940 |
|
Discounted Cash Flow |
Discount Rate |
14.0% |
- |
14.0% |
14.0% |
Common Equity/Interests |
|
15,362 |
|
Market Comparable Technique |
Comparable Multiple |
0.1x |
- |
38.5x |
12.8x |
|
|
52,492 |
|
Discounted Cash Flow |
Discount Rate |
15.1% |
- |
18.9% |
16.5% |
|
|
101 |
|
Transactional Value |
Cost |
N/A |
|
N/A |
N/A |
|
|
972 |
|
Asset Recoverability |
Recoverability % |
48.5% |
- |
48.5% |
48.5% |
|
|
27 |
|
Asset Recoverability |
Estimated Proceeds |
N/A |
|
N/A |
N/A |
Preferred Equity |
|
50 |
|
Asset Recoverability |
Estimated Proceeds |
N/A |
|
N/A |
N/A |
|
|
3,805 |
|
Market Comparable Technique |
Comparable Multiple |
0.7x |
- |
38.5x |
16.1x |
|
|
5,127 |
|
Discounted Cash Flow |
Discount Rate |
11.6% |
- |
13.1% |
12.4% |
Total Level 3 Investments |
$ |
20,181,830 |
|
|
|
|
|
|
|
(1)The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves. The unobservable inputs used in the fair value measurement of our Level 3 investments as of December 31, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements |
Asset Category |
|
Fair Value |
|
Valuation Techniques/Methodologies |
Unobservable Input |
Range |
Weighted Average (1) |
First Lien Secured Debt |
$ |
16,295,125 |
|
Discounted Cash Flow |
Discount Rate |
6.1% |
- |
48.2% |
9.0% |
|
|
2,250,700 |
|
Transactional Value |
Cost |
N/A |
|
N/A |
N/A |
|
|
45,807 |
|
Asset Recoverability |
Recoverability % |
0.0% |
- |
100.0% |
55.5% |
|
|
6,762 |
|
Market Comparable Technique |
Comparable Multiple |
0.5x |
- |
9.0x |
4.8x |
Unsecured Debt |
|
35,077 |
|
Transactional Value |
Cost |
N/A |
|
N/A |
N/A |
Common Equity/Interests |
|
2,140 |
|
Market Comparable Technique |
Comparable Multiple |
1.3x |
- |
20.0x |
11.7x |
|
|
13,853 |
|
Transactional Value |
Cost |
N/A |
|
N/A |
N/A |
Preferred Equity |
|
99 |
|
Transactional Value |
Cost |
N/A |
|
N/A |
N/A |
|
|
131 |
|
Market Comparable Technique |
Comparable Multiple |
1.3x |
- |
16.5x |
8.9x |
|
|
7,163 |
|
Discounted Cash Flow |
Discount Rate |
11.6% |
- |
12.6% |
12.1% |
Total Level 3 Investments |
$ |
18,656,857 |
|
|
|
|
|
|
|
(1)The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.
|